Value Per Click – Bidding Strategies

In some cases you as a business owner may consider that a click activity is important to your advertising strategy. This may be the case when you have an unknown product or be in the process of establishing your brand. You may consider that a click in to your website where a visitor is initially exposed to your message, product, or service has a measurable value. Each business case will be different and the value per click will really depend on what you are selling.

In some cases a business owner considers that click activity may turn into a repeat visitor or potential future buyer. They may want to assign a value to each click. This value may be substantially less than that for a true conversion, but still has some value. For example a business owner may say that each click merits $1 whereas a lead conversion would be worth $20 and a sale $2,000.

“The value per click is the expected profit from a current visitor to your website. You’ll likely want to … reflect the fact that the visitor might not convert on this particular visit, but may return in the future to buy something. The size of this adjustment will depend on your particular product or service.”

I do not recommend that you make advertising budget decisions based on click traffic but rather more data and typically data from micro conversions (lead conversions) or sale conversions.

 

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